Kim Yong-beom: Second Semiconductor Cluster to Be Announced Soon, Yongin Cluster Unchanged

South Korea is on the verge of announcing a second major semiconductor cluster, with a decision expected imminently, according to Kim Yong-beom, Chief Policy Secretary to the President. Kim stated that discussions involving major chipmakers Samsung and SK Hynix, along with relevant ministries, are in the final stages. He indicated that an official announcement detailing the location and plans would be made soon by the companies and ministries involved.

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Discussions are nearing completion, and once confirmed, companies and ministries will gather to explain to the public.

Kim clarified that the planned expansion of the semiconductor cluster in Yongin, south of Seoul, will not be canceled or relocated. Instead, the new cluster is intended to address the rapidly increasing demand for semiconductors driven by the AI boom. "Samsung is building a large new facility in Yongin, and Hynix is also planning to build four large fabs there," Kim explained. He added that the existing plans for the Yongin cluster, originally slated for completion by 2044-2048, are being accelerated to meet demand by 2034-2035.

The need for a second cluster arises from the limitations of the Seoul metropolitan area. "There is no more land in the metropolitan area, and power and water resources are also impossible," Kim noted, highlighting the necessity of finding a new site to prepare for demand beyond the next 7-8 years. The government is actively discussing how to support such a large-scale project, including securing vast tracts of land and ensuring adequate water supply.

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It is absolutely not the case that the semiconductor cluster planned for Yongin will not be built and moved to a local area.

Beyond semiconductor manufacturing, Kim also touched upon the broader economic implications of AI, suggesting a need for societal discussion on how the gains from AI-driven growth should be shared. He pointed to the potential for 'K-shaped' growth, where some segments of society benefit disproportionately, and emphasized the importance of social policies, labor policies, and the utilization of excess tax revenue to ensure more equitable distribution of wealth.

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There is no more land in the metropolitan area, and power and water resources are also impossible, so we need to find a second cluster to prepare for 7-8 years later.